higney85

Well the stock is sitting at a whopping $3.85 a share. I have played in and out of PNCL for the last 2 years and have done rather well. I will say that currently I am NOT in the stock (not even a short call) and am debating on how to approach it currently with some extra cash from my wedding (although my new Wife just wants FURNITURE). This would be a total speculative....

Positives... Contract appears to be on the horizon and our performance numbers ON THE NWA SIDE (with is 75%+ of revenue) is very good on a percentage basis. We are also "staffed" for once.

Negatives... Obvious Delta issue (-900's) and Colgan losing money (no offense to the pilots- just blaming mgmt for that one).

If the DL stuff gets worked out and/or Colgan gets turned around the stock would get an immediate boost albeit that would be on a "long call" and not a short term speculation. If we get a contract there will most likely be an immediate speculative "pop" to the stock.

Beyond these 3 variables the stock could just hemmorage slightly up or down or could go back to a moving average that is a good bit higher than the current price. Worst case the bad news continues and the slide continues...


NOT asking for money advice here- I have my own sources from that and they are not airline pilots, just looking for what others think about the situation. Glass half empty? or half full?

Wild card is the DL/NWA merger of course. Discuss discuss..

av8sean

"Investing" in an airline? Just remember, Pinnacle is akin more to a staffing company, we don't own any planes (except the 900's) and our revenue is based on a future mgmt team that just 86'ed our ATL flying. The contract pop is probably a safe bet, however I wouldn't expect much... definitely not enough to cover the premiums on a long call. The stock is so cheap, there really isn't even much point in buying calls, might as well just buy the stock.

Flyby1206

I would hold off on PNCL. NWA hasnt announced any schedule cuts or dramatic changes like every other airline has. I would expect reductions to come.

marcal

It doesn't sound like he's 'investing' in an airline. There are two ways to deal with stocks, etc......investing(long term) and trading(short term)....it sounds like he has been trading short term over the past few years taking advantage of slight changes in the market......also, just because the price of a stock is low, does not mean it is cheap.

higney85

no investing... short term "speculating" aka "trading" the stock is more like it. It looks really murky at the moment. In the past couple years it has been rather easy to see where the peaks and valleys would be. Right now I see alot of possible profit but it will be a gamble to figure out which direction for the stock price.

vtbvtdk

As said above, I'm not so sure about the wisdom of investing in an airline. If you have the resources to make short term trades (keep in mind fees for each transaction), it's not a bad plan to pick up some low stock that is going up. However, as you seem to be aware, PNCL may not be the best choice for a low buy... I would say to invest in the furniture. At least that has a warranty if it tanks.

What's the best way to become a millionaire investing in the airlines?

...Start off as a billionaire.

Airsupport

yeah but man the guys back in nov of 06 who bought our stock at 4 dollars and sold it for 21 the next week were pretty happy. like he said he is not investing in the airline but looking to make a quick buck. even if it only goes to 7 he still doubled his money. i have bought nearly 300 shares in the last week on etrade (thats all i can afford on my meger fo salary). but i have hoping to turn that 1000 bucks into 3 or 4 thousand. then get out quick cause it wont stay there long.

Flyby1206

This article is optimistic:

http://seekingalpha.com/article/8143...s?source=yahoo

higney85

I bought some blocks in August 06 and sold between $18-20/shr. After fees I was up over 200% of my initial investment. Just now with the "wife" we are "investing" instead of feeding my daytrading and short term investing hobby, especially with the volatility in the market today. I think I am going to buy a few hundred shares and just let it ride. It will still entertain me more than a set of end tables and coffee table that I will only get yelled at for putting my feet and drinks on...

WEACLRS

The chart is very negative, with a large percentage drop in the past week or so. It closed on the ninth at 5.98 and opened on the tenth at 4.69. That open gap down is very bearish. The last several days of intraday charts are also bearish to at best neutral. The short volume is very high. A long position is out of the question. You could wait for a bounce to 5 or so (which might occur with some small amount of good news) and then short the stock intending to sell at about 3.60, or place a sell order with a limit price of 3.50 or so to catch the next drop in price when it breaks down again.